MIDDLETOWN, RI – KVH Industries, Inc., (Nasdaq: KVHI) strengthened its position as the leading source for precision stabilization technology today with the announcement that Israel-based Rafael Advanced Defense Systems has placed a $2 million order for KVH’s DSP-4000 fiber optic gyros (FOGs). The dual-axis DSP-4000 FOG will be integrated within Rafael’s Remote Weapon Station (RWS), providing critical optical and weapon stabilization capabilities to increase RWS accuracy and effectiveness. Shipment of the $2 million order is expected to be complete late in 2010.

"We are thrilled to be working with Rafael to incorporate our industry-leading fiber optic gyro technology into this powerful and versatile weapon system,” remarked Jay Napoli, KVH’s vice president of FOG and OEM sales. “Remote weapon stations like those produced by Rafael are playing an increasingly critical role on the battlefield, enabling soldiers to acquire and fire upon targets while remaining protected from hostile fire within the armored hull of the vehicle. As the world’s leading provider of fiber optic gyros for RWS applications, we look forward to working with Rafael Advanced Defense Systems to pursue these significant opportunities and bring the safety and precision of remote weapon stations to soldiers worldwide.”

KVH’s militarized DSP-4000 FOG is a high-performance, low-cost, all-fiber gyro that ensures high reliability, superior performance, and exceptional vibration, shock, and acceleration survivability. The enhanced dual-axis DSP-4000 to be provided to Rafael features low noise, high bandwidth, outstanding bias stability, and excellent resolution, making it an affordable solution that delivers superior stabilization and tracking capabilities for turret, antenna, optical, and weapon stabilization systems.

Military forces around the world are rapidly adopting remote weapon stations for their tactical vehicles. Currently, the world’s biggest RWS customer is the U.S. Army, which has ordered more than 10,000 systems for use on many of its combat vehicles in a program called the Common Remotely Operated Weapons Station (CROWS). KVH supplied the fiber optic gyros to Recon Optical for the U.S. Army’s original CROWS program in 2005, and later won a contract with Kongsberg for the CROWS II program. The U.S. Army has announced a planned CROWS III program that may add an additional 19,000 RWS systems to its inventory. KVH is currently working on the development of new, smaller, lower cost designs that it believes will be particularly well suited for the CROWS III and future international RWS programs.

KVH Industries is a leading manufacturer of solutions that provide global high-speed Internet, television and voice services via satellite to mobile users at sea, on land, and in the air. KVH is also a premier manufacturer of high performance sensors and integrated inertial systems for defense and commercial guidance and stabilization applications. The company is based in Middletown, RI, with facilities in Tinley Park, IL, Kokkedal, Denmark, and Singapore.

This release may contain certain forward-looking statements that involve risks and uncertainties. Forward-looking statements include, for example, the functionality, characteristics, quality and performance of KVH's products and technology; and customer preferences, requirements and expectations. The actual results could differ materially. Factors that may cause such differences include, among others, delays in customers' qualification processes for our products or other delays in shipping, uneven military sales cycles, changes in military fielding and equipment requirements, and changes in international situations, as well as those discussed in KVH's most recent Form 10-Q filed with the SEC. KVH does not assume any obligation to update its forward-looking statements to reflect new information or developments.

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